The Central Bank of Nigeria, the Securities and Exchange Commission, and the Nigerian Deposit Insurance Corporation have collaborated to streamline the bank recapitalization process with the aim of improving efficiency and transparency in the financial sector.
In a statement to Journalists on Sunday, the Director General of SEC, Emomotimi Agama stressed that the collaboration is part of a broader effort to reduce time to market for capital raising activities and make the Nigerian capital market more attractive to investors.
Agama explained that several initiatives have been implemented, including the introduction of an electronic registration system, streamlining the registration process, and modernizing the regulatory framework.
According to Agama, these measures are crucial to increase market liquidity as they will enable companies to access capital more quickly and efficiently.
He noted that the CBN, SEC, and NDIC are working closely to ensure that banks can seamlessly raise capital during the recapitalization phase in accordance with the new framework issued by the SEC in June 2024.
“The new framework outlines the guidelines and procedures banks must follow to raise capital, ensuring a smooth and transparent process,” Agama explained.
He added that the mandatory use of the e-offer platform is expected to improve the efficiency of the recapitalization program by providing an end-to-end solution for the quotation, underwriting, and payment process.
According to Agama, the digital approach will eliminate multiple identities, reduce the possibility of unclaimed dividends, and speed up the entire process, benefiting both companies and investors.
He noted that a joint team consisting of representatives from the CBN, SEC, and NDIC has been set up to expedite the recapitalization program, especially areas such as the capital review, which is a prerequisite for de-allocation.
Agama expressed satisfaction with the progress so far and assured that the SEC is committed to realizing the full potential of the Nigerian capital market. He stressed that the ongoing reforms are in line with the “New Hope” objectives of President Bola Ahmed Tinubu’s administration, which are aimed at promoting economic growth and development.
“We are dedicated to ensuring that the capital market is well-positioned to contribute to Nigeria’s economic development. Time to market will be a key focus, and we will continue to improve our processes to ensure swift approvals for issuances,” Agama concluded.
